Refunded Purchases in Expense (Corporate Card Returns)
Occasionally, a purchase made with a corporate card may be refunded by the supplier or card issuer. When a refund is imported into Expense, it appears as a separate transaction with a negative amount. To ensure accurate accounting and reporting, it is important to handle the refund correctly. This guide explains how refunds work in Expense, how they should be booked, and what to consider when managing refunds for both corporate cards and company-sponsored private liability cards.
How Do Refunds Work in Expense?
When the bank sends card transactions to Expense, the same information is included as for a normal purchase:
- 🏪 Merchant
- 📍 Location
- 📅 Date
- 🏷️ Merchant Category Code (MCC)
- 💰 Amount
For a refund, the transaction is displayed as a negative amount, meaning it must be booked in a way that offsets or reverses the original expense.
Check the Original Transaction
Before booking the refund, you should review how the original purchase was handled.
Step-by-Step
- Identify the original purchase.
- Check which account or category was used.
- Book the refund against the same account or category.
✅ This ensures that the original expense and the refund offset each other correctly in the accounting records.
Book the Refund
When booking a refund:
- 📊 Use the same account as the original purchase
- ✅ Verify that the amount is correct
- 💬 Add a comment describing the refund
👉 This makes it easier to follow the transaction history later.
If No Receipt or Supporting Document Exists
It is common for refunds not to have a separate receipt.
Since Expense requires supporting documentation for all transactions, we recommend that you:
Step-by-Step
- 📎 Retrieve the documentation from the original purchase.
- Attach it to the refund transaction.
- 💬 Add a comment explaining the refund.
Example Comment
✅ This creates a clear audit trail.
Always Consult Your Finance Department
Organizations may have different procedures for handling refunds.
We recommend that you:
- 👨💼 Consult your finance department
- 💰 Consult payroll administration if necessary
- ✅ Follow your company's internal policies
👉 The information in this guide is general and may need to be adapted to your organization's specific procedures.
Refunds on Corporate Cards with Personal Payment Responsibility
For organizations using corporate cards with personal payment responsibility, special situations may occur.
Example
If:
- 💳 A refund is registered on the card
- 📉 The total value of the report becomes negative
this may create challenges during bank payment exports.
Important When Exporting to BGC
Bank payment files typically cannot process negative payment amounts.
This means:
- ⚠️ The refund cannot normally be exported through a BGC payment file
- ⚠️ The bank cannot credit the employee through the payment file
even if the export contains other reports with positive amounts.
Recommended Handling
If the report results in a negative balance, the refund should generally be handled manually.
Common approaches include:
- 💰 Payroll deduction
- 📊 Manual payroll adjustment
- ✅ Handling according to the company's internal procedures
💡 Best Practice Tips
- ✅ Book the refund against the same account as the original purchase
- 📎 Attach the original supporting document if no separate refund receipt exists
- 💬 Document the reason for the refund with a clear comment
- 👨💼 Confirm the process with your finance department
- 🔍 Verify that the refund does not create a negative payment export
Frequently Asked Questions (FAQ)
How is a refund displayed in Expense?
As a transaction with a negative amount.
Which account should be used?
The same account or category that was used for the original purchase.
What should I do if there is no receipt for the refund?
Attach the documentation from the original purchase and add an explanatory comment.
Can a negative report be exported through BGC?
No. Negative payment amounts generally cannot be processed in BGC payment files.
Summary
- 💰 Refunds are imported as negative transactions
- 📊 Book them against the same account as the original purchase
- 📎 Attach the original supporting documentation if no separate refund receipt exists
- 👨💼 Follow company procedures and consult your finance department
- ⚠️ Negative reports from cards with personal payment responsibility are generally handled through payroll deductions or manual adjustments
- 🚀 Proper handling ensures traceability, accurate accounting, and reliable reporting